INCOME TAX EXEMPTION UPDATES (FY 2017-18)

INCOME TAX EXEMPTION UPDATES

 For FY:17-18 (A.Y. 2018-19)

INVESTMENT (SECTIONS) AMOUNT OF DEDUCTION
 80 C:- Max limit

(Life Insurance Premium, MF, FD, NSC, PPF, Home Loan Principal, etc.)

 

150000/-
80CCD:- (National Pension System) 50000/-
 80CCG  25000/- or 50% of your investment

whichever is less

 

80D (Mediclaim Policy for self, spouse, children)

 

25000/-

 

80D (Health Insurance Premium): For Self, Spouse, Dependent Children and Parents(whether dependent or not)

 

25000/- or 30000/-
80TTA Up to 10000/- for Interest saving bank account
Gift tax:- Above 50k full amount taxable (FY) from other than Blood relation. Gift from Blood relation is 100% Exempted.

 

Exempted upto 50000/-.
Transport allowance 19200/- (FY)

C.E.A. :- 2400/- (FY)

24(b):- (home loan interest: even if you have multiple house the limit is still going to be Rs 2 Lakh only and the ceiling limit is not per house property)

 

200000/-
80G:- full amount in few selected organization Exemption is 50%.
80GGB 100% exemption for political parties
 80EE

(interest on education loan)

Unlimited
80U (in case of taking care of a Handicapped depends).. 75000/-

 

  • 80DDB:- Medical expense occurred on dependent for specified illness.
  • HRA:- as per the calculation.
  • 80GG:- Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).


Author: CA Parul Gupta
Parul Gupta qualified the CA Exams from the Institute of Chartered Accountants of India. She has dealt with many Startups, companies, partnership and proprietorship firms relating to formation and compliance services.

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